Small and Medium Enterprise Developmental Authority, (SMEDA) has recommended early establishment of SME Credit Guarantee (SCG) and Credit Insurance Funds (CIFs) for the speedy promotion of SMEs particularly in the manufacturing sector.
Establishment of these two institutions will simplify bank financing for SME’s because banks will start financing just on a letter issued by these two institutions.
The Canadian International Development Authority (CIDA) to promote exports first established SCG and CIF in Canada. After successful Canadian experience almost all developed countries including of India established these institutions.
Two working groups (WGs) of SMEDA comprising Zahid Hafeez, M A Hijazi, Saeed Anwar have submitted a set of recommendations to policy makers for the implementation of effective SME policy in the country.
